ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has determined up to 11.5 percent increase in the prescribed price of gas for consumers of both gas companies - the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company (SSGC) for the current financial year 2022-23.

In a review estimated revenue requirement (RERR) for the current financial year, the SNGPL has been allowed to increase Rs 98.17 per mmbtu or 11.5 percent increase in the prescribed price.

The Ogra recommended Rs 952.17 per mmbtu prescribed gas price for the current year against the previous prescribed price of Rs 854.00 per mmbtu.

While the prescribed price for the consumers of the SSGC has also been raised from Rs 1,007 per mmbtu to Rs 1,116.91 per mmbtu for the current financial year. Total increase in prescribed price is Rs 109.91 or 11 percent.

There is no change in the sale price of gas. The sale price of the SNGPL’s consumers is Rs 699 per mmbtu and the SSGC’s consumers Rs 699 per mmbtu. The increase in the prescribed price of gas is due to the increase in well head price and rupee-dollar parity.

In its recommendations, the Ogra is of the view that all classes of consumers should at least pay the average cost of service or the average prescribed price except wherever federal government policy guidelines have been provided, which shall be implemented accordingly. The authority, under section 8(2) of the Ordinance refers the instant determination to the federal government for natural gas sale price advise. Under section 8 (3) of the ordinance, the federal government is required to advise the authority, within 40 days of advice from the authority or revision of prescribed prices, the minimum charges and the sale price for each category of retail consumers. The revised provisional prescribed price determined, under Section 8 (2) of the ordinance, against each category of the consumers is subject to the condition that these may be re-adjusted upon receipt of federal government advice under section 8 (3) of the Ordinance in respect of the sale price of gas for each category of retail consumers provided that the overall increase in the average prescribed price remains unchanged so that the petitioner is able to achieve its total revenue requirements in accordance with section 8 (6) (f) of the ordinance.

Copyright Business Recorder, 2023